The Most Favoured Nation (MFN) Clause under the World Trade Organization (WTO) regime is based on the principle of non-discrimination between nations. This means that if a country grants any special trade privilege, such as reduced tariffs or import quotas, to one of its trading partners, it must also extend the same privilege to all other WTO member countries. In other words, no country should be given preferential treatment over others in terms of trade.

Option 1, which is the correct answer, aligns with this principle. The MFN Clause promotes fairness and equality in international trade by ensuring that trade benefits and opportunities are accessible to all member countries on an equal basis.

Option 2, discrimination between nations, is not correct as the MFN Clause explicitly prohibits discrimination and favors non-discrimination.

Option 3, differential treatment between locals and foreigners, is also not correct as the MFN Clause focuses on equal treatment among nations, rather than distinguishing between locals and foreigners.

Option 4, uniform tariff across commodities, is not accurate as the MFN Clause is primarily concerned with the treatment of nations, rather than specific commodities.

Overall, the MFN Clause under the WTO regime is based on the principle of non-discrimination between nations, ensuring that trade privileges are granted